Mortgage myths within the Latino community
Perhaps one of the most common beliefs that prevents a person from the Latino community from contacting a real estate agent (...)
If you are part of the Latino community and have not yet decided to apply for a home loan, you should know some of the biggest myths that could be giving you the wrong perspective! This is your time to contemplate the procedures you need to own a house!
I have to commit to a 30-year debt
How long and complicated is the process of applying for a home loan? For some members of the Latino community, the belief that this process is difficult to start has prevented them from accessing the home of their dreams; The good news is that, thanks to technology, many of the procedures have been streamlined, and now it is possible to quote, request approval and process a mortgage in a matter of minutes.
Institutions specialized in home loans, such as Rocket Mortgage, have the digital tools necessary for anyone to receive useful, timely and personalized information. By filling out a form with your data, you can contact an advisor and thus speed up your purchase process from wherever you are.
It is always best to give a large advance
There is a belief among the Latino community that one of the reasons why it is practically impossible to buy a house is because the advances are very high and that it is necessary to save for years to give as much as possible before accessing a mortgage. This does not have to be the case, since loan officers are highly trained to offer you the options that fit your budget, without having to spend all your savings on an advance.
For many years, there has been a belief that a larger down payment significantly reduces monthly payments; however, this is not always the case, and even though most financial institutions request a 20% advance on the total value of the house, it is possible that you can give even less money, depending on the type of loan. loan or the institution you go to. In the case of Rocket Mortgage, you can give a 3% advance once you have an approved loan.
It is better to rent than to buy
Within the Latino community, it is common to hear that people express their fear of acquiring long-term debt, or that they consider that any type of loan is a bad idea. This may be due to cultural heritage, or to the fact that the Latino community is less likely to open a savings account, and that most of their payments are made in cash, a factor that could play against when applying for a mortgage loan.
In the short term, it may seem like a good idea to rent a house; however, buying a property offers both short-term and long-term advantages, giving you a financial stability through payments that can be less than rent.
Language will be a barrier to apply for a mortgage
Another myth within the Latino community is that language will become a barrier to applying for a mortgage; taking into account that a 4% of real estate agents are of Hispanic descent this myth does not sound so far-fetched, but it is important to know that there are always options in Spanish for people who want to own a house through a mortgage.
The National Association of Hispanic Realtors in the United States has a database that includes approximately 250 professionals in the area trained to serve customers of Hispanic or Spanish-speaking descent. Also, sites like Rocket Mortgage has a fully Spanish option to find all the information you are looking for.
If you are denied the mortgage once, you will no longer have the opportunity to apply for it again
This could be related to the credit score, since certain financial institutions require a high score, which is sometimes difficult to achieve. This does not have to discourage you, because although you may be denied the mortgage once, this does not mean that you will automatically be denied in all subsequent attempts.
This implies a change of strategy; for example, you have the option of requesting a small personal loan or applying for a credit card, so that you can build a credit history that opens the doors for you in the future to release the house of your dreams.
You need a high credit score
Perhaps one of the most common beliefs that prevents a person from the Latino community from contacting a real estate agent is the fear that their credit score will be rejected, but don’t be discouraged! and it is possible that, more than the score, it is your history and credit profile that is taken into account for this process.
Two aspects that are taken into account are the debts you have acquired and the punctuality with which you have paid them over the years; in the case of credits through the Federal Housing Administration (FHA), a credit score of less than 620 is required to obtain a mortgage customized to the financial capabilities of each client.
If I don’t have a social security number, they won’t give me a home loan
To buy a house you do not need to present a social security number; instead, you have the option to increase your wealth by investing in a property using your Personal Taxpayer Identification Number (ITIN), a document that places you in the category of responsible taxpayers residing in the United States, which consequently opens the doors to higher financial benefits.
Also, when applying for a mortgage loan with your ITIN number, you will have access to tax benefits, especially during the first years of your mortgage, which is the term when you pay the most in interest rates. With this, you will be ready to start analyzing your home loan options. It will be very easy to open your new home!
Refinancing may cause finance charges to be higher over the life of the loan.
Rocket Mortgage, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226 Licensed Mortgage Banker-NYS Department of Financial Services; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply.
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